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ELRCOtherNot stated in the judgment extract (application dated 21.06.2023 in the suit decided by final judgment of 06.11.2020)· [2023] KEELRC 3008 (KLR)

Nguti &196 others v Kenya Railways Corporation (Cause 803 of 2013) [2023] KEELRC 3008 (KLR)

Employment and Labour Relations Court
27 November 2023
2,024 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court refused contempt findings and dictated payment against Kenya Railways, ruling a pending appeal doesn't stop parties from working out what's owed.

What this practically means

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Executive summary

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The claimants moved the Court by notice of motion dated 21.06.2023 seeking entry of judgment in the sum of Kshs.175,304,730.83 pursuant to the decree of 06.11.2020, a declaration that the respondent's failure to tabulate and pay the amounts due constituted wilful disobedience and contempt, and summons to the respondent's Managing Director. The respondent opposed, arguing the applicants had not invoked section 5 of the Judicature Act for contempt, had not served a statutory notice under section 87 of the Kenya Railways Corporation Act, that an appeal (Civil Appeal No. E026 of 2023) was pending, and that the Court was functus officio. The Court held it had jurisdiction, as the application was in substance one for satisfaction of the decree under section 34 of the Civil Procedure Act and Order 22 rule 6, and the pending appeal, absent any stay, did not bar the parties from perfecting the decree. On the merits, the Court found the respondent had substantially complied by tabulating within the 30 days allowed (letter of 02.12.2020); the parties then exchanged competing tabulations (Kshs.175,304,730.83 against Kshs.918,889,646.63), creating a stalemate the claimants had not moved to break with pointed material. No wilful and deliberate disobedience was established, and the contempt and payment prayers collapsed. The Court deemed the time for tabulation and approval extended until the parties agree on the figure payable or obtain the Court's intervention, and ordered each party to bear its own costs of the application.

Key legal issues

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01

Jurisdiction to entertain an application for satisfaction of decree while an appeal is pending

Holding

The Court had jurisdiction; the application, though couched under review provisions, was essentially about compliance/satisfaction of the decree, and absence of a stay meant nothing prevented perfecting the order

Reasoning

The Court held the real dispute was whether the tabulation order had been complied with, not a review of the judgment. Enforcement of the Court's orders flows from section 13 of the ELRC Act read with the Civil Procedure Act and rule 32(2) of the ELRC Rules. Section 34 of the Civil Procedure Act places satisfaction of decrees before the executing court, and Order 22 rule 6 requires execution applications to be made to the court that passed the decree.

p. 4
02

Compliance with the tabulation order

Holding

The respondent substantially complied by tabulating within the 30 days (letter of 02.12.2020); the impasse was a stalemate between competing tabulations, not disobedience

Reasoning

The order required tabulation within 30 days expiring 06.12.2020; the respondent's counsel wrote on 02.12.2020 with a computation. The claimants did not approve within 30 days, understandable given their number. The parties then exchanged competing tabulations (Kshs.175,304,730.83 on 25.06.2021; Kshs.918,889,646.63 on 21.09.2022) leaving a stalemate which the parties may resolve by agreement or by seeking the Court's intervention.

p. 4
03

Contempt / wilful disobedience

Holding

Not established; the contempt-based prayers collapsed

Reasoning

Because the tabulation was done within the ordered period and the parties' disagreement was over the figures, there was no wilful and deliberate disobedience. The Court also found no perfected decree for satisfaction, so partial payment could not be ordered in absence of agreed or judicially determined divergence points.

p. 4

Legal principles established

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  • Where no stay of execution is in place, a pending appeal does not stop parties from perfecting the terms of the decree, and satisfaction of a decree is a matter for the court that passed it
  • Matters of satisfaction of decrees go to the court which passed the decree under section 34 of the Civil Procedure Act

Court orders

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  1. 1.By parties' conduct, the time for tabulation of the amount payable and approval by the claimants in order 5 given on 06.11.2020 is deemed extended until parties agree on the figure payable or obtain the Court's intervention
  2. 2.Each party to bear own costs of the application

Authorities

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Legislation

  • Employment and Labour Relations Court Actsections 12, 23, 16 and 20
  • Employment and Labour Relations Court Actsection 13
  • Employment and Labour Relations Court (Procedure) Rulesrules 31, 32 and 33
  • Judicature Actsection 5
  • Kenya Railways Corporation Actsection 87
  • Civil Procedure Actsection 34
  • Civil Procedure RulesOrder 22 rule 6

Cases cited (1)

  • Kenya Railways Corporation -Versus- Thomas M. Nguti and 196 Others
    Civil Appeal No. E026 of 2023
Jurisdiction invoked
Sections 12, 13, 16 and 20 of the Employment and Labour Relations Court Act; sections 34 and Order 22 rule 6 of the Civil Procedure Act; rules 31, 32 and 33 of the ELRC (Procedure) Rules

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Nguti &196 others v Kenya Railways Corporation (Cause 803 of 2013) [2023] KEELRC 3008 (KLR)", Case Analysis (2023). Not stated in the judgment extract (application dated 21.06.2023 in the suit decided by final judgment of 06.11.2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3008/eng@2023-11-27

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.